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Case Law Details

Case Name : In re Utkal Polyweave Industries Pvt Ltd. (GST AAR Odisha)
Appeal Number : Order No. 05/Odisha/AAR/18-19
Date of Judgement/Order : 16/11/2018
Related Assessment Year :
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In re Utkal Polyweave Industries Pvt Ltd. (GST AAR Odisha)

Tariff heading 3923 includes goods that are classifiable as ‘Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics’. Polypropylene Leno Bags, as stated by the applicant, are manufactured by weaving polypropylene strips (tapes), Linear Low Density Polyethylene (LLDPE) and Plastic Master Batch. Polypropylene is a wide variety of plastic. LLDPE is a plastic that is softer and more flexible and has lower tensile strength. These raw materials are made from Plastic Granules. The strips of plastic (polypropylene) are used for weaving ‘PP Leno Bags’ which are clearly classifiable under Tariff Item 39232990 of GST Tariff. The applicant had also been clearing the said goods under Chapter 39 all along and now seeks to reclassify them under Tariff Head 63053300 just to avail the lower GST Rate prescribed in the GST rate schedule for the goods classifiable under Chapter 63. As observed above and also as decided by the West Bengal Appellate Authority of Advance Ruling, PP Leno Bags are classifiable under heading 39232990 and not under 63053300. It is a fact that both the headings bear reference to Sacks and Bags but, in view of the exclusion in the Chapter Note 1(h) appearing under Chapter XI, Woven Fabrics and articles thereof specified under Chapter 39 are not to be covered by the articles mentioned against the heading 63053300.

Further, as per the existing CBEC Revised Duty Drawback rates schedule applicable w.e.f. 01.10.2017, “polypropylene woven fabrics/bags/sacks, whether or not laminated, with or without U.V. stabilization, with or without liners/fasteners” are specifically classified under drawback chapter 39 under Tariff Item 392302.The item under consideration being woven bags of polypropylene therefore merits classification under this Chapter as it stands today without any ambiguity.


1.0 M/s Utkal Polyweave Industries (P) Ltd., 26-Ganeswarpur Industrial Estate, Januganj, Balasore-756019, Odisha (hereinafter referred to as the ‘Applicant’) assigned with GSTIN 21AAACU3799H1Z8 having registered address at 26-Ganeswarpur Industrial Estate, Januganj, Balasore-756019, Odisha have filed an application on 28.08.2018 under Section 97 of CGST Act, 2017 & OGST Act, 2017 read with Rule 104 of CGST Rules 2017 & OGST Rules, 2017 in Form GST ARA-01 seeking an Advance Ruling on ‘Classification of P P Leno Bags’. The applicant enclosed copies of challans as proof of payment of Rs.5,000/-for SGST bearing CIN NO.SBIN18082100017988 dated 10.08.2018 and Rs.5000/- for CGST bearing CIN No.SB!N17082100000562 dated 11.08.2017 towards the fee for Advance Ruling . The applicant submits that the question raised in the application has neither been decided by nor is pending before any authority under any provisions of the GST Act, The officer concerned raises no objection to the admission of the application. The application is therefore, admitted.

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